Housing: Underoccupancy Charge

Lord Beecham Excerpts

Wednesday 20th January 2016 Lords Chamber

[Lord Freud]

Some 20% of the total number affected have looked to improve their employment outcomes; among those who are unemployed, that is up to 63%. In the overall figures you can see real changes in behaviour, with the number of workless families in social housing down to an all-time low of 39%. This in a context of dramatic changes in employment levels, with employment at its highest level since records began; record lows in inactivity; record female employment; record youth employment; the lowest number of workless households since 1996; and out-of-work benefits at their lowest level since 1982. We are seeing a transformation and this is part of it.

[Lord Beecham (Lab)]

My Lords, in Newcastle alone, 4,720 households are affected by the charge—1,200 with children and 1,000 of them working households. The average loss per household is £748 a year, and arrears from 2,000 households amount to £639,000. How does the charge contribute to the well-being of these families and will the Government be applying equivalent financial sanctions for underoccupation to those to whom they intend to offer benefits under their starter homes policy?

[Lord Freud]

I understand that the noble Lord is referring to a study conducted by Newcastle University. I have to point out that that study was a qualitative survey, based on interviews with 38 people, which was a self-selecting sample.